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Up to 100 new jobs are expected to be created at a Shropshire dairy plant as part of a new £17m investment.

Muller UK announced a new butter-making factory would open at its Market Drayton base in the autumn.

It said the move was also good news for dairy farmers in the area as it would need to source more milk.

But some producers said it was not clear if the investment would lead to higher milk prices, which they claim is the "biggest issue" they face.

Paul Rowbottom, part of the Farmers For Action group that blockaded the Market Drayton site last year, said: "Butter is a very low-commodity product, so they're unlikely to pay a good price for it. We'll see.

"They're not even paying cost of production to a lot of farmers, although there are some companies paying even less."

Rapid expansion

Muller UK's chief operating officer Ronald Kers said it would be looking to recruit more milk suppliers from the spring onwards.

Andrew Bebb, who farms near Hanwood in Shropshire, described the investment as "brilliant news" and a "vote of confidence in UK milk producers".

The new facility, which would be the biggest of its kind in Britain, is expected to process about 90,000 tonnes of cream a year and produce about 45,000 tonnes of butter.

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